Financing the Bowline Hotel's Build Out

"Even though Adrift Hospitality had successfully renovated multiple other properties, banks wouldn’t finance the construction of the Bowline Hotel because the building was on pilings and deemed too risky. Tiffany explains, “Craft3 stepped in, and not only did they give us a significant sized loan for their portfolio, but also they haven’t shied away from challenges banks would have shied away from.”

Perhaps the biggest challenge was the COVID pandemic and its associated shutdowns and uncertainty. Craft3’s loan to the Bowline Hotel closed in January 2020, and construction was underway in March 2020 when COVID-related public health measures shut down much of the economy. Tiffany recalls, “The first thing Craft3 did was they didn’t panic. They basically said we need you to pause” and take stock.

During this pause Craft3 reassessed Bowline’s financial condition, found it to be sound, and resumed financing, with just a few minor changes designed to reduce Craft3’s risk, while ensuring Bowline got the funding it needed.

Adrift is an important regional employer, providing many living-wage jobs that offer possibilities for growth and advancement. Before the pandemic, Adrift employed 114 people; today it employs slightly more and, like many local businesses, it is hiring briskly."